What Does It Really Mean When Your Job is Being “Reclassified”?
Once an employer comes to the realization that it has been misclassifying “non-exempt” employees as “exempt” employees, and not paying them 1.5 times their normal pay rate if they work over 40 hours per week, it faces the decision as to what to do about the problem.The choices include:
- Do nothing and continue violating the law until they are caught and forced to deal with it.
- “Reclassify” the jobs and begin paying overtime, but say/do nothing about past overtime owed.
- “Reclassify” the jobs and begin paying overtime, and offer employees compensation for past overtime owed.